The board of confectionery major Britannia Industries approved share split in 1:2 ratio to make the stock more affordable for the small retail investors and increase liquidity. The Kolkata-based company will split the shares with a face value of Rs 2 into two equity shares of Re 1 each.
According to a PTI report: The company said in a regulatory filing that the division would be subject to the approval of the members and authorities as applicable.
“There had been a significant rise in the market price of the equity shares of the Company over a period of last one year,” it said.
“In order to improve the liquidity of the Company’s Equity Shares in the Stock Markets and to make them more affordable for the small retail investors, it is proposed to sub-divide Equity Shares of face value of Rs 2 each into 2 Equity Shares of the face value of Re 1 each,” it added.
Britannia has authorised share capital of Rs 50 crore of 25 crore shares. Besides it has 12.01 crore equity shares of Rs two each.
Post split, it would be “Rs 50 crore divided into 50 crore equity shares of the face value of Re 1 each,” it said. Similarly, it would have 24.03 crore equity Shares of Re 1 each.
The company expects it to complete within “3-4 months from the date of Board approval”.
Britannia Industries has also amendment its Articles of Association and all other applicable provisions regarding it.